AMLIN LAUNCHES $1BN BERMUDA REINSURER, £224M RIGHTS ISSUE

Lloyd’s insurer Amlin is to form Amlin Bermuda, a wholly-owned Bermudian reinsurer capitalised at $1bn. A rights issue will raise £215m, net of expenses, offering seven new shares for every 22 existing shares at 175p per share. This represents a discount of 21% to the closing price last night. The issue is fully underwritten by Hoare Govett. The remainder of the capital will be funded through additional borrowings and Amlin’s internal resources. Amlin Bermuda will focus on regional US and international catastrophe reinsurance. It anticipates gross premium income of $350m in 2006 and $500m in 2007. CEO Charles Philipps said that “we intend to be up and running in Bermuda by 1 January 2006, at the start of the key first quarter renewal system”.Meanwhile, Amlin will increase the capacity of its Lloyd’s syndicate 2001 by 17.6% next year to £1bn.